______the audit risks_______the materiality and_________the audit effort.

Related Mcqs:

Which of the following statements is not true about continuous audit?

A. It is conducted at regular interval B. It may be carried out on daily basis C. It is needed when the organization has a good internal control system D. It is expensive...

Stock should be valued at_________?

A. Cost B. Market price C. Cost or Market price whichever is lower. D. Cost less depreciation....

What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?

A. The auditor concludes balance is materially correct when in actual fact it is not B. The auditor concludes that the balance is materially misstated when in actual fact it not C. The auditor has rejected an item for sample which was material D. None of the above...

Which of the following affects audit effectiveness?

A. Risk of over reliance B. Risk of incorrect rejection C. Risk of incorrect acceptance D. Both A and C...

Which of the following statement is true regarding an auditor’s working papers?

A. They document the level of independence maintained by the auditor B. They should be considered as the principle support for the auditor’s report C. They should not contain details regarding weaknesses in the internal control system D. They help the auditor to monitor the effectiveness of the audit firm’s quality control...